Start learning →

Money spent on a capital expenditure is recorded by adding it to

Aan asset account
Ban expense account
Ca capital reserve
Dthe drawings account
Answer & Solution
Correct answer: A. an asset account
Capex increases the value of the asset, so it is debited to an asset account.
Practise this question with Quill — CA Foundation →

Keep practising Accounting Concepts

Browse all Accounting Concepts questions for CA Foundation, or explore more Accounting topics.

Start a Accounting Concepts lesson →
Related questions